In conversations with hotel owners, operators and candidates over the past several weeks, one thing keeps coming up regardless of region or brand: finding the right person to lead a luxury property has become harder, not easier, even as the pipeline of new luxury hotels reaches record levels. That contradiction, more supply than ever, and a shrinking pool of leaders ready to run it, is worth examining properly, because it is reshaping how owners need to think about talent.
A construction boom that the talent market cannot match
The global hotel construction pipeline hit an all-time high in the second quarter of 2026, with nearly 16,000 projects and nudging 2.4 million rooms in development. The luxury chain scale alone accounts for close to 1,400 of those projects, up 8 percent year on year, and industry forecasts point to well over 120 new luxury and ultra-luxury openings across 2026 and 2027 alone. Every one of those properties needs a general manager and a senior leadership team on day one.
The supply side has not kept pace, and the gap is sharpest exactly where the growth is. Bangkok added 4,200 luxury keys in 2024, with a further 5,200 in the pipeline through 2026. Yet, the city’s broader hospitality sector reported 34,000 unfilled vacancies in the fourth quarter of 2024 alone, and general manager roles in the luxury tier sat vacant 18 percent of the time.
The Middle East tells a similar story from the supply side: the region’s hotel pipeline has reached an all-time high of nearly 232,000 rooms under contract, led by Saudi Arabia’s Vision 2030 developments, with industry analysts describing the pipeline as considerably skewed toward luxury and upper-upscale development. Talent does not stay still in this environment. Dubai’s tax-free packages of USD 180,000 to 250,000 for general managers are drawing experienced leaders out of Bangkok and other regional hubs, and Singapore’s simpler work-permit route is doing the same from another direction. Hospitality employers worldwide report 74 percent difficulty filling roles, one of the hardest-hit sectors globally, and as the Bangkok figures above show, that strain reaches leadership, not only front-line roles.
The broader picture across Europe points the same way: the trade body HOTREC puts the sector around 10 percent short of the staff it needs overall, with UK Hospitality counting 132,000 open hospitality vacancies nationally, 48 percent above pre-pandemic levels. Wherever in the world ownership is building, the same shortage of ready leaders is waiting when the doors open.
Compensation structures built for a different era
This is compounding a second problem: many hotel compensation frameworks still reflect pre-pandemic assumptions. Analysis from compensation specialists in the sector points to three recurring issues. Bonus plans often still reward labour efficiency over retention and guest experience, which increasingly works against what owners actually want. Pay compression between supervisors and the hourly staff they manage, often within just 3 to 7 percent, makes stepping into management financially unattractive rather than aspirational. And flat, one-size bonus structures fail to reflect what a GM overseeing a multi-property portfolio, or a residential component, is actually accountable for.
Owners who are serious about retaining leadership talent are increasingly moving toward total-reward structures with clearer performance links, rather than treating compensation as a fixed legacy cost.
Branded residences are adding a skill set most GMs were never trained for
A further complication: luxury hotel development is increasingly inseparable from branded residential, and growth here is no longer concentrated in a handful of gateway cities. The Middle East has become the sector’s primary growth engine, accounting for a fifth of branded residence projects worldwide and a quarter of the future pipeline, with Dubai alone home to 175 projects across operational and pipeline phases.
Asia-Pacific is moving fastest of all: Vietnam has built the world’s fifth-largest branded residence pipeline from a near-standing start, and India has grown from under seven schemes before the pandemic to 34 today. Each of these projects needs a leadership team that understands residential association management and owner relations alongside traditional hotel operations, a discipline barely taught anywhere in the conventional hotel operator career path.
An underused talent pool
It is also worth naming a gap the sector has not closed in any market we operate in. In the US, where workforce data is most granular, women make up close to 60 percent of the hospitality workforce but hold only around a quarter of C-suite roles, and representation narrows further still for other underrepresented groups. We see the same pattern anecdotally across Asia and Europe, even where it is tracked less consistently. Any owner or operator serious about solving the leadership shortage should treat this less as a diversity statistic and more as a straightforward supply-side opportunity: a meaningful share of the sector’s most experienced people are being systematically underused for the very roles it cannot fill.
What this means for owners
None of this is a reason for pessimism about luxury hospitality, the growth numbers say otherwise. But it does mean the old approach to hiring a GM, waiting for a vacancy and running a conventional search, is no longer sufficient on its own. Succession planning in particular is becoming more important for owners and asset managers, and responsibility for it should sit squarely with the operator. Developing the next generation of leaders is part of managing a hotel, not an optional extra, and the cost of getting it wrong is high: every month a property runs without a general manager or key executive shows up in profit, in staff motivation and in the training that quietly stops happening. Operators should come to the table better prepared, with a credible bench and a plan, rather than a vacancy notice. The familiar reassurance that corporate teams will absorb the extra work in the meantime does not work for owners; in our experience, it never does.
The owners we see managing this well are doing three things: holding their operators accountable for succession pipelines built two and three years ahead of an actual vacancy, rethinking compensation as a retention tool rather than a cost line, and widening their search criteria to include commercially trained candidates from adjacent sectors and underrepresented talent pools they may not have considered before. The properties opening in the next two years will be won or lost, in no small part, on whether ownership got this right well before opening day.
If any of this sounds familiar, it is worth talking to us. Our executive search practice sits inside Global Asset Solutions’ wider asset management business, which means our market view is not built on public surveys alone, it is shaped by the real leadership, performance and compensation data we see across the luxury hotels we actively asset-manage. Whether you are planning a senior hire, questioning whether your compensation structure will hold up, or simply want an honest read on your leadership pipeline, I would welcome the conversation.
Margy Mommertz
Executive Search, Global Asset Solutions. Connect with Margy on LinkedIn.
Source: View the original article at Global Asset Solutions.